Errors and Omissions / Professional Coverage

Errors and Omissions / Professional Coverage

What is it?

Financial loss of a third party arising from failure of the insured’s product to perform as intended or expected.

Financial loss of a third party arising from an act, error, or omission committed in the course of the policy-holder’s performance of services for another.

Essentially, whenever you make a claim about your product or services performing a certain way and that claim is unfounded in a customer’s eyes, Errors and Omissions Insurance protects you from the subsequent lawsuit from that customer. Keep in mind that simply offering a product/service to a third party automatically creates expectations without anything more.
An Errors and Omissions Insurance policy will generally cover any judgments against the company, settlements, and costs to defend against E&O-based lawsuits.

Why do I need it?

You may be extremely confident that your product works or your services are performed with top-notch customer service, and your confidence may be completely warranted. But you still need Errors and Omissions insurance.